Correlation Between DAX Index and PNC Financial
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By analyzing existing cross correlation between DAX Index and PNC Financial Services, you can compare the effects of market volatilities on DAX Index and PNC Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DAX Index with a short position of PNC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PNC Financial.
Diversification Opportunities for DAX Index and PNC Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and PNC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PNC Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Financial Services and DAX Index is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DAX Index are associated (or correlated) with PNC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Financial Services has no effect on the direction of DAX Index i.e., DAX Index and PNC Financial go up and down completely randomly.
Pair Corralation between DAX Index and PNC Financial
Assuming the 90 days trading horizon DAX Index is expected to generate 0.41 times more return on investment than PNC Financial. However, DAX Index is 2.46 times less risky than PNC Financial. It trades about 0.55 of its potential returns per unit of risk. PNC Financial Services is currently generating about 0.11 per unit of risk. If you would invest 1,998,432 in DAX Index on October 27, 2024 and sell it today you would earn a total of 141,061 from holding DAX Index or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. PNC Financial Services
Performance |
| Timeline |
DAX Index and PNC Financial Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PNC Financial Services
Pair trading matchups for PNC Financial
Pair Trading with DAX Index and PNC Financial
The main advantage of trading using opposite DAX Index and PNC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PNC Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PNC Financial will offset losses from the drop in PNC Financial's long position.| DAX Index vs. Q2M Managementberatung AG | DAX Index vs. Cleanaway Waste Management | DAX Index vs. Fukuyama Transporting Co | DAX Index vs. Ares Management Corp |
| PNC Financial vs. China BlueChemical | PNC Financial vs. Pebblebrook Hotel Trust | PNC Financial vs. INTERCONT HOTELS | PNC Financial vs. Meli Hotels International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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